Pentagon Auditor Can't Account For $800 Million In Spending

The Pentagon’s Defense Logistics Agency (DLA) has reportedly "lost track" of hundreds of millions of dollars it spent, said Ernst & Young, the accounting firm conducting the first-ever Pentagon audit, according to Politico.

E&Y discovered that DLA "failed to properly document more than $800 million in construction projects," said Politico, which also reported this is just one of the many instances where millions of dollars went missing as the accountability system inside the Pentagon is broken. Worse, according to Politico, the first-ever audit, covering the fiscal year that ended Sept. 30, 2016, signals complete incompetence about how the Pentagon handles its $700 billion annual budget.

While these comments from Ernst & Young are mindnumbing, the Trump administration is set to ask Congress for $716 billion for defense spending for fiscal 2019, a 7% increase over the 2018 Budget. Budget analysts have sounded warnings this would be a significant surge in spending for the Pentagon at a time when the organization can barely keep track of its current expenditures.

“If you can’t follow the money, you aren’t going to be able to do an audit,” Sen. Chuck Grassley, an Iowa Republican and senior member of the Budget and Finance committees, who has suggested to past administrations that hemorrhaging of wasteful spending at the Pentagon must stop.

Army Lt. Gen. Darrell Williams, the agency’s director, wrote in response to Ernst & Young’s bombshell findings that the audit has “provided us with a valuable independent view of our current financial operations.”

“We are committed to resolving the material weaknesses and strengthening internal controls around DLA’s operations,” he said, according to Politico.

The DLA is a $40 billion-a-year logistics agency within the Pentagon with some 25,000 employees and processes about 100,000 orders a day, said Politico.

Ernst & Young’s auditors found significant accounting errors in DLA’s process of tracking expenditures. There are minimal accounting records of where the money is going said the report. This does not bode well for accountability at the Pentagon, which has combined assets of $2.2 trillion.The Politico describes one section of the audit where Ernst & Young’s auditors found misstatements for some $465 million in construction projects. Another section described that there was very little documentation for another $384 million worth of spending.

In one part of the audit, completed in mid-December, Ernst & Young found that misstatements in the agency’s books totaled at least $465 million for construction projects it financed for the Army Corps of Engineers and other agencies. For construction projects designated as still “in progress,” meanwhile, it didn’t have sufficient documentation — or any documentation at all — for another $384 million worth of spending. The agency also couldn’t produce supporting evidence for many items that are documented in some form — including records for $100 million worth of assets in the computer systems that conduct the agency’s day-to-day business. “The documentation, such as the evidence demonstrating that the asset was tested and accepted, is not retained or available,” it said.

The auditor also said that around $100 million worth of assets in computer systems had very little documentation.

The report, which covers the fiscal year that ended Sept. 30, 2016, also found that $46 million in computer assets were “inappropriately recorded” as belonging to the Defense Logistics Agency. It also warned that the agency cannot reconcile balances from its general ledger with the Treasury Department.

"The initial audit has provided us with a valuable independent view of our current financial operations," Army Lt. Gen. Darrell Williams, the agency’s director, wrote in response to Ernst & Young’s findings. "We are committed to resolving the material weaknesses and strengthening internal controls around DLA’s operations."

In a statement to Politico, the DLA said it is the “first of its size and complexity in the Department of Defense to undergo an audit so we did not anticipate achieving a ‘clean’ audit opinion in the initial cycles.”

“The key is to use auditor feedback to focus our remediation efforts and corrective action plans, and maximize the value from the audits. That’s what we’re doing now,” the statement said.

Back in January, the team of 1,200 auditors found some $830 million in “missing” helicopters as the audit kicked off into 2018.

And in a preview of what is to come, Norquist told the House Armed Services Committee that an initial Army audit found 39 UH-60 Black Hawk helicopter ($830,700,000) were not adequately recorded in the property system. “The Air Force identified 478 structures and buildings at 12 installations that were not in its real property system,” he added. In other words these helicopters were simply “missing” on the books.

As the army of auditors penetrates deep inside the Pentagon’s financial records, we wonder what the 1,200 will find next as they descend further down the rabbit hole of decades of failed proxy wars, regime changes and dictator slush funds?

thank you to Lawrence kotlikoff, Mark skidmore, and Catherine Austin fitts for bringing to light the wholesale plunder of the public treasury by deep state criminals under the guise of "defense spending"

The Pentagon should just ask for all its funding to be done in TARP form. SO that pesky little things like accounting for how the money was spent wont get in the way of hookers, drugs, penthouses in central and south america or chateaus in france for high ranking officers.

$800 Million is Chump change. According to Catherine Austin Fitts and her colleagues, there is $15 TRILLION (with a "T") missing from DOD and HUD ALONE. SO stop pissing about with Millions or even Billions if we are ever to get to the bottom of where the money went. And more importantly, try to get it back (I know, I'm not holding my breath!)

I'm surprised that more on ZH aren't zeroing in on this to better understand this. I think most are just glossing over it. It's ridiculous (and a little suspicious) that ZH hasn't covered it.

You simply CANNOT comprehend what is really going on in DC and what all these issues with inability to reconcile balance sheets or the depths, breadth and control of the DS without truly understanding the money. YOU ALWAYS FOLLOW THE MONEY.

I just posted this on another thread... people need to understand these funneling mechanisms.

In final 18 mos. of Bush administration, US lost $12T on its net worth, 20% of accumulated wealth over two centuries was gone in 18 mos. No one in .gov, Wall Street held responsible.

After financial collapse in 2008 - $26T in bailouts not including TARP or FDIC financing of US institutions ($100k for every person), all done by Fed Reserve w/out any act in Congress authorizing it.

Trillions extended by the Federal Reserve in the form of corporate welfare - they took US dollar, they control the currency and have control over money supply and for first time in history they played favorites and lent out money at 0.01% interest to these special banks.
Bloomberg reported that there are Trillions in off-balance sheets transactions that FR has entered into since Sept (’08?)

Inspector General for Board of Federal Reserve Governors representative testified in hearing that they have direct oversight over board programs and operations and also look at board-delegated functions at reserve banks as well as the board’s oversight and supervision at the reserve banks. But they do not have jurisdiction to directly audit reserve bank activities. In other words, if the NY Fed Member or other member reserve banks made $23T in free transactions—gave it away, she had no jurisdiction to understand, look at or know about it.

It might surprise some that the intermediary between HUD and the entities it pays out is Lockheed Martin...

And the largest siphon of all: Unacknowledged Special Access Programs. These are not the acknowledged, approved, and official "covert programs" like Prism and others disclosed by Snowden, for example.

Nearly all USAPs developed out of the need to covertly fund covert research for covert development of interstellar travel means and very likely, weaponry. And before your very well-trained brain cries "conspiracy!", this is history. Over 13,000 reports on UFOs on record from government, military and NASA astronauts and more from commercial airline pilots.

MIIC that bureaucratically have established dominion and control over the entire American democratic process and are waging war—invading and occupying the ME oilfields attempting to establish what they refer to as “full-spectrum dominance”.

Bifurcation of the legitimate national security and military intelligence operations and the deep black programs that are unacknowledged – resulted in explosion of USAPs.

The primary mechanism that facilitates USAPs is a covert funding system:

Out of the 1947 National Security Act the CIA was born, which allows either agency to withdraw money from any other agency without disclosure; essentially ensuring that money can be stolen from any known program for any unknown reason and no elected official would ever know about it.

Remember that USAPs operate totally off the books as a self-perpetuating funding and development mechanism fondly referred to as the "kleptocracy of the petrofascists". They are also completely managed, controlled and operated without any high-level government/Congressional/publicly elected office oversight; they are managed by private contractors who enjoy secret protections afforded only to the private sector. In some cases no elected official, not even the president, has any knowledge that a USAP exists.

Of course, after you grasp all this... the next step is going down the rabbit hole for what the money is being used for.

THIS is the root of the DS control of DC and around the world. THIS is why we've seen unprecedented transfer of wealth (like recent market movements) in the past few decades. THIS is why unfathomable things are happening and why the military has been thinned (despite never-ending cries for more infusions) and why we're seeing "accidents" on the seas and exotic energy pulverizing 100+ story buildings and bringing down aircraft... just as a start. There is little else going on in our lives that is not connected to the secret economy. We can't solve anything without starting there.

-Secret black budget funding via congress and also via all kind of front organizations set up for this purpose; NGO's, 'Charities', foundations, 'banks' etc. This is the real reason for the Clinton 'Foundation'. Hillary and Bill get a cut. CIA gets the rest. Hill and Bill have been CIA since the 70's during their hillbilly days in LittleRock. It's why they've never been charged with any of their well known crimes.

-Drug trade commisions. CIA has been skimming a 10% commission from the drug trade since at least the 50's.

YES - you're right. Catherine Austin Fitts recommends that the missing is really more in the $50T range--they're still in the process of identifying and documenting it. So this research is just starting to gel.

This doesn't even touch the drug/arms trades, the faux non-profit racketeering. I'm not sure if anyone has started tracking that yet. When pizzagate broke wide open, researchers were hot on the trail of CF, especially when former CEO Eric Braverman disappeared (most feared he was "suicided" when he was actually just lying low--he's reappeared at various university 'talks').

But the MSM shut pizzagate down hard and fast so most people have no idea what it was really about, which was CF crimes and connections with human and organ trafficking. Dune Creature covered a lot of that back then here on ZH.

Another thing to remember is that the BUSHES gave birth to the Clintons... so no Clinton crime can really be separated from the Bush dynasties. This goes back a few generations - need to understand how Nazi corporations and state specialties were set up here in the US, courtesy of Operation Paperclip fellas. And this ties directly into JFK assassination. Dr. Joseph Farrell has done excellent research on these eras - highly recommend following him. He's written 35+ books but you can get a quick intro to him by watching his two presentations at the 2014 Secret Space Program vids on YT.

This is why I've been saying EVERYONE inside the DC beltway needs to be locked up. .......... They are all crooks or little crook helper elves and fairies.

BTW, 800 million USD is Crystal City strip club money for a month for the Beltway Bandits. .. Chump change. .... Lap dance jingle.

Live Hard, It's Like All Of The Bean Counters, Accountants And Auditors At Dot Gov Have Been Lobotomized. .......... OR We The Tax Paying Pimples Are Actually Hostages, Slaves And Ass Clowns On A Big Pirate Ship With A Heavy Manifest Of Chumps And Fools Kept Locked In The Dark Cargo Hole, Die Free

Coming late with this comment but I can't believe I forgot to add that:

One of the primary mechanism of the deep state is patent control - mentioned above but also, most people don't realize the memo included a patent that basically controls all of the universe. Here's an pseudo-excerpt from a conversation w/ "Thomas Payne" - former NSA and you know what that means...

The group wants to control a full spectrum panopticon, 2/47 real-time world view grid: everything, everywhere at all times using phones, cars, passports, licenses, credit cards, TVs, subcutaneous RFID chips. Not just tracking but since human body is basically like a human transistor (water, carbon, tissue) like MKUltra and its progeny- controlling planes, cars, cargo ships, people - turning on, turning off, utilizing the “internet of things”.

The straw that broke the camel’ back of the conspiracy between FBI and DOJ is Devin Nunes’s memo. That memo is going to make that entire conspiracy going on for two years disintegrate into thin air. 2000 pages condensed into a 4-page memo.

The patent was hidden - 170 pages with 660 extra pages (longest patent they’d seen in history) which covers everything listed above (panopticon). Eric Schmidt (former CEO of Alphabet - parent of Google) is a stooge - he’d come through Bell Labs, all the militarized parts of the MIC and MIIC, AT&T, Bell were monopolies owned by gov’t - monopolies continue to today:

Patents

Through Defense Advance Research Project Agency (DARPA), the DOD publishes ideas for tech they want developed. Corporations bid for contracts and then go to work, which is how it’s still done.

But before, the DOD would just approach universities. The internet was DARPA net to begin with (Payne was around at that time working for NSA and they never thought it would be used by public because it was a weapon—information on that level, unchecked, becomes a weapon because it’s unknown if it is manipulated or controlled propaganda, etc.

Only military got on DARPA net at that time. So when it was released through Steven Crocker who controlled the Icann numbers, the ISP address numbers, who was there in ’93 w/ Pedesta, Rod Rosenstein—the same exact players as today.

So when you say full spectrum control that means patents—the largest amounts of money going into tech companies since the government owned IBM.

When Payne got out of NSA, he went to work for the HIGHER branch of NSA - GE, Honeywell, Digital, IBM - that’s who really runs things.

There’s a corporate battle going on and industrial and patent espionage in the corporate world. HRC became an infringement patent lawyer - the #1 way to make money as a lawyer is infringement on patents because you can control the patents, troll for new patents. US government doesn’t control patent office anymore - it’s now controlled by Serco.

Early on, the patent office was controlled by James Chandler (Nat’l Security Counsel who was there in ’63, he was there when IBM wanted to sell computers to the public.

The patent office didn’t want them to sell computers to humans - they would allow them to sell the computers to foreign countries as weaponized tools.

So they built in zero day off switches, backdoor, remote access mechanisms. Payne has reported for 2 years that Intel has a remote controlled chip in their computers called ME - mechanical engine control for everything on the computer. Every user signs the “User agreement” that mentions this called “aggressive remote control” device and is part of this patent: Point Focal Node Trusted Remote Access Control (PFNTRAC).

QRS11

So when Payne ran into Abel Danger’s claims that HRC ripped off his sister’s patent QRS 11 patent, and that there was a device on every plane called “uninterruptible auto pilot”. And that there was a group called “Senior Executive Service”. So Payne looked into these claims and found they were all true - and worse.

QRS11 - came from LR, AR connected with a guy who invented other devices used by NSA. Also there in LR were heads of FBI, CIA were also there in ’93, worked together, nothing formal and they created the first encryption conference to determine who will control the codes - had to be the NSA, no such thing as a device that NSA can’t get into (known since Vault 7, Stellar Wind, Prism, etc.) Same group of people who control the patent office through IBM, get together.

QRS11 is a very complicated crystal that is a gyroscope that can tell where you’re at L-R-up-down-forward-backward, speed and altitude. It contains a microchip that can be controlled and turned off, disabling the vehicle - it’s in every moving device (cars, trains, automobiles, bike, bus), it’s in cable cars, everything that flies, every defense missile.

It’s not by accident that HRC was sent to Rose Law Firm. AR was the center of amazing corruption."

More likely than not, $$$TRILLIONS have been spent on the *Secret Space Program*.

Don't believe Me?

Take a look:

-

$21 Trillion dollars is missing from the US government. That is $65,000 for every person in America. That is more than our entire national debt!

"What’s going on? Where is the money? How could this happen? How much has really gone missing? What would happen if a corporation failed to pass an audit like this? Or a taxpayer?

This means the Fed and their member banks are transacting government money outside the law. So are the corporate contractors that run the payment systems. So are the Wall Street firms who are selling government securities without full disclosure. Would your banks continue to handle your bank account if you behaved like this? Would your investors continue to buy your securities if you behaved like this? Would your accountant be silent?

This is the reason that there is such a strong push to change or tear up the US Constitution. This is why members of the establishment say it is “old,” “outdated!” This is why there is such a push for gun control. Don’t buy it! We can use the Constitution to get our money and our government back. It is time to enforce the US Constitution.

The Solari Report has been covering the missing money since 2000 when Catherine Austin Fitts began to to warn Americans and global investors about mortgage fraud at the US Department of Housing and Development (HUD), the engineering of the housing bubble that lead to trillions more dollars in bailouts and funds missing from the US government starting in fiscal 1998...."

If you don't know who CAF is... you have no business being on ZH - or breathing for that matter.

And Tyler - it's complete bullshit that you haven't covered this here.

For some fascinating info - watch the presentations from the 2014 Secret Space Program (specifically Catherine Austin Fitts, Joseph Farrell, Richard Dolan, and for those who get into aero-tech Mark McCandlish)

For those that have am. English as a 2nd or 3rd language here at ZH, I'd like to point out that verumcuibono is not referring to me specifically when stating " If you don't know who CAF is... you have no business being on ZH - or breathing for that matter. ".

verumcuibono is referring to those not familiar with Catherine Austin-Fitts(CAF).

Catherine is, a rare example of an individual; Brilliant, Compassionate and explains things in an easy-to-understand layman's lingo.

I warmly suggest anyone not familiar with CAF's work to take time to research her work.

At least ZH isn't wiping out the dialogue in comments sections. I cannot tell you how many sites hire disinfo trolls to control the conversation (by banning people) on just about everything from vaccines to bioengineered weaponry (Lyme disease), cancer and the 85 murdered natural doctors and the 100+ murdered microbiologists and researchers... I've experienced it first-hand. CIA psyops at its best.

On the positive side of things, I do really love the variety and quantity of brand new military surplus gear that's siphoned out of the pipeline by "organizers" for sale in the civilian market. Now if the US CONgress would just make it legal to buy new machine guns I'd love to get my hands on an updated version of the M60 machine gun. Of course, with lots of new "surplus" ammunition.

" As the army of auditors penetrates deep inside the Pentagon’s financial records, we wonder what the 1,200 will find next as they descend further down the rabbit hole of decades of failed proxy wars, regime changes and dictator slush funds?" -Tyler

LOL they're eyeing the $3 trillion in social security. They plan on abolishing social security to pay for the tax cut and defense build up.

We hear the same story over and over, the government must pay the dividend on the $3 trillion of which social security uses to pay out claims on the money we put in. They say the amount of money the government must pay to social security is because it's an entitlement which must be cut. So it's slated for the mixed up world of lies and confiscation, we'll be told it has to be done for this and that reason.

The MSM will parrot the mantra, and everyone will sing the same tune and nothing we say will stop the greatest robbery in US history.

People worked all their lives with a promise, if you put money in, then you will get it out when you're old. What a lie. Funny how the Jews like Greenspan, Stockman and Rivlin have pumped abolishing social security, Stockman made it his life work, over and over he pumps the same message, kill social security. And he never says we will get our money back.

We need a nuclear war to pay these people back for what they have done to the country. The court yard in the center of the Pentagon is ground zero. Who in their right mind would have all their commands in one building in the nuclear weapons age.

I wonder what would happen if a 500 kiloton thermonuclear warhead detonated in that court yard. It's a given, everyone at the Pentagon would be burned alive.

It's like Pearl Harbor - o-rama, same with all the carriers at Norfolk naval base. So we spend and spend, but we're not ready for anything but playing boy scout patrol chasing a bunch of 13th century rag heads.

...WTC 1 & 2 and Pentagon too! I can't remember details but for example there was a subsidiary of Cantor Fitzgerald (floors upper 90s and 100s --lost all employees) that experienced a 7-second takeover of their servers that AM. I'd repost the link but I can't find it - a great researcher created a video outlining all of the financial fraud known to date that occurred on 9/11 and it's simply stunning. This takeover was assumed to be linked to Deutche Bank's nefarious activities that day.

And of course, the renovated area of the Pentagon with it's "Titanic of all construction to withstand impact", was the exact area of the pentagon where Office of Naval Intelligence was doing its research into the mission $2.3T from Pentagon that Fucker Rumsfeld so conveniently went public about on 9/10. They really think we're this stupid because, well, most of us are.

I know a lot less about the OK City bombing but those who have done excellent research on 9/11 have also done serious research into the pallets of files that were conveniently moved into the Murrah building days before the explosion(s). I think CAF speaks about this too.

And we can't forget the recent fires at Clinton compound. Awhile back there was another fire at the Federal Reserve (kid you not).

I got into a nice argument with an English speaking, German Army major. I set him up into discussion about the judicial systems where he said they had the oldest and fairest. Then I said you are not a democracy because you don't

have free speech. Vat, he said. No, I said. There is one subject in Germany and Austria and now Italy which you cannot speak freely about without being arrested and imprisoned. If you question the engineering of the crematoriums or the chemistry of the methods used to kill, you go to jail. Even if you don't use the word , "Joos", in your discussion you will be arrested, fined and jailed. The only word in the world that is illegal to use in lands of free speech. And this subjugation (no pun intended) is spreading.

Social Security is a true entitlement, paid for by the American workers and employers, but no big deal, we'll (big Brother) just "borrow" that money to take care of everyone else that doesn't pay into SS and give those poor little tit-sucking, lazy, illegals and citizens plus all their families free food, housing, medical care, and money to spend as they see best for themselves, and continue those handouts because THEY'RE entitled to have the American dream, even if they don't work for it.

Now all you old people, well, you should be thinking of upcoming generations...

Can someone please explain basic economics to DC?!! No budget for 8 yrs, $21T in debt, shrimp on treadmills, and grants to study how transgender bathrooms will effect students in grade school..... GIVE ME A FRIGGIN' BREAK!!

A little history and economics lesson for you. When social security was first introduced, average life expectancy was 67 so the calculations were based on recipients collecting benefits for 2 years. Fast forward to today where the average life expectancy has risen to 78 years. The contributions you made over your working life are paid out over the first 2 years, so yes, the first 2 years is a true entitlement. Everything after that is a handout. In order for SS to be a completely true entitlement, one of 3 things (or combination) needs to happen:

1) increase the retirement age

2) increase premiums

3) reduce benefits

On a broader base, there are a ton of other “entitlements” that need to be reduced or eliminated. The country can no longer afford them.

When you add up DOD and HUD losses, Quantitative Easing, FED "assistance" to Too-Big-To-Fails and market Pump & Dumps, paying for the elderly Babyboomer Social Security and Medicare would cost a tiny portion of the $50 trillions already stolen from the public. But if you really are all exercised about "entitlements", just go right ahead reorganizing those RMS Titanic deckchairs.